JIKO BUKKEN

WHAT IS A ‘JIKO BUKKEN’ PROPERTY?
A “jiko bukken” is a property where the former occupant died of unnatural causes, such as suicide, murder, fire or neglect. They can be rented or purchased at very low prices, provided you are okay with the ‘history’ of the home or apartment. There are a growing number of individuals and companies that specialize in purchasing these properties at huge discounts, and either renting them out of re-selling in the future. In the case of a house, the house may be demolished and the land re-sold.

THE LAW REGARDING THE RENTAL OR SALE OF A “JIKO BUKKEN”
Under the Real Estate Transaction Law, the real estate license-holder has a legal obligation to inform the tenant or buyer of any known unnatural deaths that occurred in the property. The details of the accident must also be explained in the “Important Details and Particulars” document that is signed at the time of contract.

For properties for sale, although the law is not specific about time lines, it is generally assumed that the agent will inform the buyer if the death occurred within the past 10 years. To be on the safe side, some agents will inform buyers regardless of how many years have passed.

For properties for rent, the real estate agent is obligated to inform the very next tenant who moves into the property after the incident, but there is no obligation to inform any future tenants. Some less-than-ideal real estate agencies may rent the apartment to one of their staff for a short period before re-listing the apartment at the full market price.

For a death by natural causes (with the exception of the body not being discovered for a long period of time), in some cases this may not be considered a psychological defect to the property and may not be disclosed.

If the incident occurred in a different apartment within the same building, there is no obligation to inform the tenant or buyer. However, if the death did not occur within an apartment but was caused by someone jumping from a high floor, agents tend to inform all new occupants in order to avoid any troubles from arising.

WHAT IF THIS INFORMATION IS NOT DISCLOSED TO THE TENANT OR BUYER?
If the seller/landlord or real estate agent intentionally omits this information from the rental or purchase contract, the contract may be nullified (there have been court cases where the contract has been voided). In almost all cases where the agent has been taken to court because of concealing the history of the property, the court has ruled against the real estate agent.

The risk of being caught is high, and legitimate real estate license holders follow the law very seriously so the chance of being tricked into renting or buying a ‘jiko bukken’ should be very low if you go through a proper real estate agent. (...)

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